One of the most basic concepts in technical analysis is support and resistance. Support is a price level where buyers repeatedly absorb selling and turn prices back up. Resistance is a price point where sellers repeatedly overwhelm buying and push prices back down.

Analysts and traders often denote certain price levels as support or resistance points based on previous turning points, chart patterns, trendlines, and, occasionally, moving averages.

For example, an analyst might comment, "The E–Mini S&P 500 futures look set to test the 1,240.00 level for a second time," noting that the last time the market traded at 1,240.00 the uptrend stalled and the price dropped back to 1,230.00 before climbing again. The 1,240.00 level is considered resistance, a level at which sellers are expected to appear again.